We live in a Fractional Reserve system. Money is debt. If there was no debt, nobody would have any money. It sounds crazy but the person who created the system is a genius.
There was another cartoon explaining the money system, but the illuminati deleted it off the internet.
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Honest question.
Where is all the money? I hear nothing but bad news about financial crisis all over the world, and it seems that there is a shortage of cash - like it is some sort of natural resource.
People haven't stopped buying stuff. They still need food, clothing, medicine, shelter. Taxes are still collected. Fines are still levied.
So where is all the money? I mean, labor has been produced to make things and wages paid to the laborers. The things are purchased by other laborers, who were paid for producing goods or services, etc. It's a closed loop, right?
Can someone explain it like I'm five or something?
https://www.reddit.com/r/finance/comment...orld_gone/
You'll also want to read this.
https://www.reddit.com/r/explainlikeimfi...orld_debt/
https://www.reddit.com/r/explainlikeimfi..._its_debt/
Another thing you have to worry about is interest rates. Interest rates set by banks steal all the money in the country (and world), and exponentially give more and more of it to the banks. This is best explained with a diagram.
Imagine that each square is a person with a loan from the bank, and the dark purple circle is all the money that is in the economy. The lines represent the exchange of money from person to person when they buy or sell things. If there is £100 in the country and the bank borrows someone £20 and they have to pay £10 interest, in total they are paying £30 and the bank is profiting £10 for giving away money. So far so good, right? What's the problem?
Well if all the population owes money from the bank, or even 50%, there won't be enough money in the economy to pay the bank back all the money. When a bank sets interest rates, they are not based on supply and demand or competition like the iPhone or Nokia 3210 is. What happens is that there isn't enough money in the economy to pay off the interest. If Alex, Taylor and Kelsey all borrow £20 from the bank because they get paid £40 a week, and there is £100 in the economy, there won't be enough money to pay off all the debts. £40 x 3 = £120. Plus the £30 interest makes it £150. There's £100 in the economy and £150 in debt. The richest country in the world, America, does not have enough money to pay the national debt.
So what happens, they increase inflation in order so there's more money in the economy for people to pay their debts interest rates as you can see from the light purple circle, they can pay off their national debt with the money they've printed, and use inflation to steal money from the citizens by increasing taxes without people noticing. (Allegedly, when people borrow money from the bank, they create the money they loan on the spot, it doesn't come from people's bank accounts, allegedly.)
It's a system designed to screw the 99%, and give complete control to the 1%. Just like how when an american tried to make a currency backed by gold you could exchange for gold, the government put him in prison because restaurants were accepting these gold dollars and exchanging them for gold. They said it's illegal to call something Liberty Dollar as it's confusing to US dollar.